Helen Purchased a Put Option That Had an Exercise Price

question 6

Multiple Choice

Helen purchased a put option that had an exercise price of $50, a premium of $2, five months to expiration, and a stock price of $52. At expiration the stock was selling at $54. What profit/loss did Helen earn? Assume the option was for one share of stock.

• A) -$4
• B) -$2
• C) 0
• D) +$2

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North America

A continent located in the Northern Hemisphere, mainly between the Atlantic and Pacific Oceans, consisting of countries such as the United States, Canada, and Mexico.

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